Our investment
Description of the investment.
Description of the investment.
Our investment in Lendable MSME Fintech Credit Fund II (LMFCF 2) will support the growth of impactful fintech lending models in global emerging markets.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
Improve access to basic financial services and increased economic opportunities for traditionally underserved populations including women (SDG 1.4, 8.10, 8.3). |
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How?
| Primary | Secondary |
|---|---|
|
Direct: By increasing access to non-dilutive growth capital (i.e., debt) for inclusive fintech companies, more customers have better access to financial services (e.g., through payments, consumer credit) and economic opportunities (e.g., through embedded finance, asset finance, MSME lending). |
Catalysing markets (demonstration): Banks and other lenders are unable to lend to most fintech companies as they lack the underwriting and structuring capabilities and risk appetite for this segment. Lendable has developed a strong model to lend to fintech companies including through the integration of its tech-platform Maestro. The financial success of LMFCF II will showcase how to lend to fintech companies, thereby increasing capital flows into and impact from scaling this segment. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Customers (of the fintech borrowers) including retail individuals and MSME owners. |
1/3 Pan-Africa, 1/3 Asia, 1/3 LatAm based on the strategy. |
Customer characteristics will vary based on the geography and business model of the fintech. Conversations with the Manager validate a focus to target underserved customers, and our analysis indicates c.70% reach to low-income among the African and Asian fintechs that Lendable lends to. |
How much?
| Scale | Depth/Duration |
|---|---|
|
Reaching 20-25 companies. LMFCF I is estimated to have reached 5.5m MSMEs and 5.7m individual customers in 2023. |
Depth: expected to be greater for customers that are more financially excluded. In Sub-Saharan Africa, only 14% borrowed from the formal sector, 12% in South Asia, 33% in Southeast Asia, 30% in LatAm. According to LMFCF I, 25% of customers were accessing formal finance for the first time. Duration: Expected to last beyond that of the financial service, especially for credit. |
Risk
Unexpected Impact RiskRisk that lack of customer protection principles and currency exchange risks may have an adverse impact on the customers. Lendable has strengthened its approach to customer protection, which gives us some comfort. Evidence RiskGiven the intermediated structure of the transaction (BII > Lendable > fintech > end customer), ultimate impact may be challenging to capture. Lendable will use Maestro data to develop proxies and conduct select surveys to monitor this. Alignment RiskRisk that Lendable focuses on lending to less impactful fintechs and geographies. Our discussions with the manager suggest that impact is a core part of their culture and investment process. |
Impact score
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Impact score (at point of investment)
The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. The Impact Score shown is based on the 2022-2026 Impact Score methodology. You can find out more here. The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party. |
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5 |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
We agreed an ESAP with the investee which included strengthening its ESMS to include mitigation measures associated with labour, GBVH and supply chain risk management.
Environmental and social risk
Medium-Low
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at [email protected]
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Key facts
- First published
:
When the investment was first published on the website database.
- December 2025
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2026
- Project number
:
An identifier number shared by investments in the same project.
- D5918
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- Africa, Asia, Central America, East Africa, Latin America and the Caribbean, North Africa, South America, South Asia, Southeast Asia, Southern Africa, West Africa
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Africa, Asia, Latin America and the Caribbean
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Business and consumer services, Construction and real estate, Financial services, Manufacturing, Technology and telecoms
- Investment policy :
- Catalyst
- Investment type :
- Fund
- Start date :
- July 2025
- Amount :
- $15m
- Currency of investment :
- USD
- Fund manager:
- Dynolabs Asset Management Ltd.
- Domicile
:
The company or investment fund’s place of incorporation.
- Luxembourg
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
Type of investment portfolio that each investment is made under. Since 2014, we have run two investment portfolios: Catalyst and Growth. In addition, our Kinetic Portfolio enables us to manage concessional investment strategies.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- First published
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Gender and climate finance facts
- 2X gender finance
:
Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.
- Fully qualified
- 2X qualification criteria:
:
2X Criteria the investment qualifies under. See 2X Criteria for more information.
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- Employment
2X threshold 45%: Investee already meets threshold - Indirect/Portfolio
2X threshold 30%: Investee commits to meet threshold - Governance and Accountability
- Employment
- 2X sector
:
Indicates the specific 2X sector benchmark the investment qualifies under. See 2X Criteria for more information.
- Financial and Insurance Activities
- 2X country
:
Indicates the specific 2X country benchmark the investment qualifies under. See 2X Criteria for more information.
- United Kingdom
- 2X gender finance
Investments made by this fund into companies:
For further information about these companies, visit https://lendable.io/
| Investment name | Country | Region | Sector | Fossil Fuel or Renewable Exposure | Start date | Status |
|---|---|---|---|---|---|---|
| F88 | Vietnam | Rest of the World | Financial services | September 2025 | Active | |
| First Digital Finance Corporation | Philippines | Rest of the World | Financial services | December 2025 | Active | |
| Fleetch | Cote d'Ivoire | West Africa | Business and consumer services | December 2025 | Active | |
| Leasy | Peru | Rest of the World | Manufacturing | September 2025 | Active | |
| LendMN | Mongolia | Rest of the World | Financial services | December 2025 | Active | |
| Mattilda | Mexico | Rest of the World | Financial services | September 2025 | Active | |
| Mottu Mexico, S. DE R.L DE C.V. | Mexico | Rest of the World | Manufacturing | September 2025 | Active | |
| Prima | Mexico | Rest of the World | Construction and real estate | September 2025 | Active | |
| ShopUp Pte Ltd | Bangladesh | South Asia | Technology and telecoms | December 2025 | Active | |
| Solvento | Mexico | Rest of the World | Financial services | December 2025 | Active | |
| Watu Credit Limited | Kenya | East Africa | Financial services | September 2025 | Active |
